MKT 320 Exam 1
Regarding stakeholders, which of the following is not consistent with the information that appears in your textbook?
The words stakeholder and shareholder mean the same thing
Inside the corporate offices of a well-known store chain, marketing executives Carly Farley and Cecil Diesel are having a spirited discussion. Specifically, they are debating whether they should tailor the marketing mix of their new product to appeal to the "Achievers" market segment or the "Innovators" segment, or whether they should develop a separate marketing mix for each of those segments. From their use of labels like "Achievers" and "Innovators" to describe their target market, we can determine that Carly and Cecil's company has bought into the __________ segmentation typology.
VALS
On March 16, 2016, a long-awaited event took place in Lexington, Kentucky: Cabela's opened its Hamburg store. According to the authors of your textbook, the correct general-merchandise retailer classification for Cabela's is __________.
category specialist
The authors of your textbook state that a retail __________ "defines the way a retailer sells and delivers merchandise and services to its customers."
channel
If a retailer identifies customers in its target market by benefits sought, lifestyles, and demographics, it is taking the __________ approach to segmentation.
composite
According to the authors of your textbook, a retailer that engages in __________ has a sense of purpose that is higher than simply making a profit by selling products and services.
conscious marketing
Retailing is described by the authors of your textbook as "the set of business activities that adds value to the products and services sold to __________ for their __________."
consumers; personal and family use
The authors of the textbook classify __________ as a limited-assortment supermarket.
save-a-lot
Most of us think of Staples and Office Depot as places to buy school or office supplies, such as an office chair, a package of file folders, an ink cartridge, a flash drive, office software, a printer, a shredder, or a stapler. However, at Staples you can also buy a Monster energy drink and at Office Depot you can buy a king size Snickers bar. These are examples of __________.
scrambled merchandising
When Scott Free moved into his new apartment, he decided to buy a new TV. Scott went to Best Buy and looked at various Samsung, LG, Sony, and Vizio televisions. Once he had decided that he wanted a particular 50-inch Samsung model, Scott searched for a lower price online and ended up ordering that same Samsung from Amazon. The label __________ is used to describe Scott's shopping behavior.
showrooming
The s in s-retailing stands for __________. An example would be when __________.
social; Jay Walker clicks the buy button on a picture on Instagram
An example of intertype competition is when __________ and __________ compete for the same customer's dollar.
speedway; walgreens
In the world of retailing, the initials SKU stand for __________.
stock keeping unit
The retail mix consists of merchandise management, pricing, communication mix, location, customer service, and __________.
store design and display
The authors of your textbook describe a buying process that begins with __________ and ends with __________.
need recognition; post purchase evaluation
Which of the following pairs of items would retailers think of as the same SKU?
A 14.3-ounce package of Golden Oreo cookies and a 14.3-ounce package of Golden Oreo cookies
Even though Dalton Walton is 23 years old and "tech savvy," he prefers to buy most items at a bricks-and-mortar store rather than shopping through other retail channels, such as catalogs or the Internet. According to the authors of your text, what might be the reason why Dalton would rather take the time to drive to the mall or a standalone store, park his car, and spend time walking through the store in search of an item?
A. If Dalton has a question about an item or wants advice, he prefers to talk to a store sales associates face to face rather than on the telephone or through an online chat feature. B. Dalton likes to use all five senses when he is examining products. C. Dalton is all about instant gratification. Waiting even one day for a purchase to be delivered is excruciating for him.
Regarding catalog retailing, with which of the following statements would the authors of your textbook likely agree?
A. Some consumer groups view catalogs as an unnecessary waste of natural resources. B. Consumers do not need a computer, mobile device, or Internet connection to place a catalog order. C. Compared to websites, catalogs are often easier to browse.
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories retailer. At present, the retailer has eleven locations: three at regional malls, six in strip centers, and two standalone stores. Thus far, Gothic Ghoullery has sold its merchandise only through traditional brick-and-mortar stores. If Sondra were begin selling through the Internet channel, what advantage(s) would she gain?
A. Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories retailer. At present, the retailer has eleven locations: three at regional malls, six in strip centers, and two standalone stores. Thus far, Gothic Ghoullery has sold its merchandise only through traditional brick-and-mortar stores. If Sondra were begin selling through the Internet channel, what advantage(s) would she gain? B. Gothic Ghoullery could offer more personalized information about products. C. Gothic Ghoullery could offer a deeper and broader selection of products.
The authors of the textbook classify __________ as a limited-assortment supermarket.
ALDI
The authors of your textbook refer to __________ as the "gold standard" of omnichannel retailing.
Apple
Regarding retail channels, with which of the following statements would the authors of your textbook likely agree?
At present, the retail channel with the highest growth rate is the mobile channel.
Which of the following is not a retail channel?
HGTV
Chanda Lear just found out that her sister-in-law, Holly Wood, is coming to visit for three days. Between now and the time "Sis" arrives (which is about six hours from now), Chanda needs to buy paper towels, eggs, milk, diet soda, an air-freshener refill cartridge, snack crackers, and dish soap. Four retailers are in Chanda's consideration set for the quick shopping trip she is about to make: Kroger (about three miles away), ALDI (about a mile away), Rite Aid (about a half-mile away), and Walmart (about six miles away). Chanda believes she can accomplish one-stop shopping at any one of the four stores. In the terminology of the multiattribute model, if Chanda were to articulate her beliefs about the stores' performance benefits, Kroger would receive the following scores (on a scale of 1 to 10, with 10 being best). Desirability of brands carried: 9 Ease of parking-lot and front-entrance access: 3 Budge friendliness: 4 Pleasure of the shopping experience: 6 Proximity to home: 4 Chanda would give ALDI the following scores on the same performance benefits. Desirability of brands carried: 4 Ease of parking-lot and front-entrance access: 8 Budget friendliness: 10 Pleasure of the shopping experience: 3 Proximity to home: 7 Chanda would give Rite Aid the following scores on the same performance benefits. Desirability of brands carried: 5 Ease of parking-lot and front-entrance access: 6 Budget friendliness: 2 Pleasure of the shopping experience: 5 Proximity to home: 10 Chanda would give Walmart the following scores. Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 1 Budget friendliness: 8 Pleasure of the shopping experience: 2 Proximity to home: 2 Chanda places the following importance weights on the five key performance benefits (with 10 representing "very important" and 1 representing "very unimportant"). Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 5 Budget friendliness: 4 Pleasure of the shopping experience: 7 Proximity to home: 8 If we use the multiattribute model to predict which retailer Chanda will choose, which of the following can we conclude?
Chanda will go to Rite Aid
Which of the following describes a consumer who is using an internal source of information during the information search step of the buying process?
Cierra Barrera "takes mental inventory" of what she has learned from her past shopping and purchase experiences.
Decision makers at a department store chain know from market research that their average customer comes from a household of $60,000 annual income, 33% of their customers have children at home, 51% of their customers have a college education, and the median age of their customers is 42. These statistics are an example of __________ information that a retailer might use for market segmentation.
Demographic
__________ is a retail channel in which salespeople interact with customers face-to-face in a convenient location, often in the customer's home. Salespeople in this channel are often independent agents rather than full-time employees. Typically, they demonstrate the product and/or explain the service, take an order, and deliver the merchandise. Examples of companies that sell through this channel (in the U.S.) include _________, __________, and __________.
Direct selling; Pampered Chef; Rodan + Fields; Younique
Which of the following successful retail entrepreneurs is not matched with the correct retailer?
Ingvar Komprad: H&M
When two discount department stores such as JCPenney and Kohl's compete for the same customer, what type of competition is occurring?
Intratype
The NAICS code for Speedway gasoline station/convenience store at 515 Euclid Avenue in Lexington is 447110. 447110 is also the NAICS code for all of the following except
Pilot Travel Center at I-64 exit 28 in Simpsonville.
Which of the following examples best illustrates a hedonic need?
Sophie Brophy buys herself a new pair of shoes to cheer herself up at the end of a bad day.
The __________ system classifies all U.S. neighborhoods into 67 segments based on demographics and socioeconomic characteristics. To get this proprietary analysis of the population surrounding a prospective retail site, a retailer would need to buy it from _________. A retailer might use this information if it wished to take a __________approach to market segmentation.
Tapestry™ Segmentation; Esri; geodemographic
Which of the following retailers is not classified as a category specialist?
Target
The NAICS code for Francesca's at Fayette Mall is 448120, which is also the NAICS code for Altar'D State, Ann Taylor, J. Jill, and Lane Bryant. Victoria's Secret, on the other hand, has a different NAICS code: 448150. Which of the following explains why Victoria's Secret has a different NAICS code from the others?
Victoria's Secret is categorized as an accessories store. The others are classified as women's clothing stores.
An example of intratype competition is when __________ and __________ compete for the same customer's dollar.
Walmart; Target
The NAICS code for the Kroger supermarket on Euclid Avenue in Lexington is 445110. The first five digits (44511) identify it as __________.
a grocery store or supermarket
Beverly Everly takes her lunch to work every day, and a sandwich is always part of her lunch. Bev's favorite part of a sandwich is the cheese, and she enjoys just about any cheese that has a bold flavor. Bev is loyal to the Sargento brand of sliced cheese, which she buys at her neighborhood supermarket. In the past, Bev has bought—and enjoyed—Sargento Chipotle Cheddar slices, Sargento Jarlsberg Swiss slices, Sargento Pepper Jack slices, Sargento Muenster slices, Sargento Extra-Sharp Cheddar slices, Sargento Aged Swiss slices, and Sargento Vermont White Cheddar. Each of these Sargento cheeses is almost always available at Bev's neighborhood supermarket, as are the more "ordinary" kinds (such as Sargento Mild Cheddar, Sargento Monterrey Jack, Sargento Provolone). Today, Bev is unable to shop at her neighborhood supermarket because of recent storm damage to the store. Instead, she is shopping at a competing supermarket a few miles from her home. When she arrives at the cheese section, Bev is dismayed to see that this store carries only five kinds of Sargento slices: Swiss, Mild Cheddar, Monterey Jack, Medium Cheddar, and a Cheddar-Mozzarella blend—and none of these appeal to her adventuresome taste buds. Compared to Bev's neighborhood supermarket, the store where she is shopping today appears to offer __________.
a more shallow assortment of merchandise
The NAICS code for the Kroger supermarket on Euclid Avenue in Lexington is 445110. The first three digits (445) identify it as __________.
a store that sells food and beverage
When Paul Swentzel, principal owner and CEO of S&S Tire (a retail chain), purchased a Bridgestone/Firestone distributorship (a wholesaler), S&S became a wholesaler selling to S&S stores, as well as a wholesaler selling to the S&S chain's retail competitors. Mr. Swentzel's purchase of the Bridgestone/Firestone distributorship is an example of __________ in the supply chain.
backward integration
Shirley Turley owns Ballistic Bazaar (a gun shop and shooting range). Shirley decides she can segment her market into three distinct groups: those who want a weapon for home protection those who want a weapon for seasonal hunting of varmints collectors who enjoy owning a wide variety of firearms for their intrinsic and aesthetic value Thus, she segments her market into those who are seeking safety for their household and/or family, those who are seeking recreation, and those who are seeking the satisfaction of ownership in and of itself. Which label most closely resembles the dimension that Shirley is using to segment her market?
benefit segmentation
_______________ is the process of grouping consumers into market segments based on what they want the product to do for them.
benefit segmentation
__________ is the number of merchandise categories a retailer offers. Women's clothing, food, and household cleaning products, for example, are three different categories.
breadth
The authors of your textbook state that retailers create value by ordering large quantities that are convenient for manufacturers to ship, and then offering them for sale in the smaller quantities that are convenient for consumers to buy. According to the authors, the technical name for providing value in this manner is __________.
breaking bulk
In the present-day marketplace, retailers receive most of their sales revenue through __________.
brick-and-mortar stores
A "Walmart Neighborhood Market" is smaller than a Walmart Supercenter or a standard Walmart discount store. It occupies, on average, 38,000 square feet and offers about 28,000 items, including fresh produce, meat and dairy products, bakery and deli items, household supplies, health and beauty aids, and a pharmacy. At present, there are approximately 200 Neighborhood Markets in the U.S. (compared with approximately 3,000 Supercenters and about 600 standard Walmart discount stores). Walmart Neighborhood Markets most closely resemble stores in which food retailer category?
conventional supermarkets
Typically, we'd expect a(n) __________ to carry a broader variety of merchandise than a(n) __________.
department store; category specialist E
According to the authors of your textbook, if you use a desktop or laptop computer to shop, you are shopping in the ________ channel. On the other hand, if you use a smartphone or a tablet, that is called __________.
electronic; mobile channel
Kirk Burke is shopping for tires for his pride and joy, i.e., his 2016 Camaro SS. When Kirk bought the car new, it came equipped with Pirelli P Zero tires. Kirk is not sure he wants to replace the original tires with more of the same. The Pirellis performed admirably in the spring and summer months. However, for the $850 to $1,100 that he'll end up spending, Kirk suspects that there may be other brands and types of tires that would be more appropriate for year-round driving. Kirk also knows that some tires are more appropriate than others for a cool car like his. He wouldn't want to buy tires that he and his buddies think of as belonging on their grandfathers' Oldsmobiles (such as Uniroyal, Goodyear, or General), just like he wouldn't want to disgrace his beloved Camaro by buying tires that would look more at home on the Volvos, Subarus, and minivans of cautious "soccer moms." Maybe BFGoodrich? Toyo? Stick with Pirelli? Kirk isn't at all sure what to buy. All he knows at this point is that he'll visit a lot of websites and tire retailers, and he'll have a lot of conversations with service representatives before he makes his final choice. Kirk's tire shopping behavior most closely resembles
extended problem solving
Compared to a(n) __________, a(n) __________ usually carries deeper assortments of merchandise within the merchandise categories that it sells.
extreme-value retailer; drugstore
All other things being equal, retailers can expect a consumer's most important reference group to be his or her __________.
family
According to the authors of your textbook, we can consider Saks Fifth Avenue, Bloomingdale's, Nordstrom, and Neiman Marcus to be __________.
first-tier department stores
Gordon Food Service is a Grand Rapids, Michigan-based wholesaler/distributor. The company sells to grocers, restaurants, and institutions in a multi-state area that extends from Northern Michigan to Key West. You've probably seen its red-and-white "GFS" tractor/trailer rigs delivering food to restaurants. In 1979, the company opened its first retail store, GFS Marketplace, making a large selection of restaurant-quality products available for household use. GFS Marketplace stores now exist in over 100 locations, and are an ideal source for large households and consumers who may be planning to throw parties - and no membership fee is required of those who wish to shop there. When Gordon Food Service began opening GFS Marketplace stores, the company was engaging in __________.
forward integration
McKesson Company is a global company that is based in San Francisco. The company, which has existed since 1883, provides health care products to drug store chains, independent retail pharmacies, and hospital pharmacies. For example, McKesson purchases bandages, gauze, antibacterial cream, ointments - and anything else you might need to treat a cut or scrape - from a variety of manufacturers, and then assembles the appropriate assortment of these products for the retailers that it serves. In 1996, McKesson acquired FoxMeyer Health Corporation, which gave McKesson ownership of the 350-store Health Mart chain of pharmacies. Since then, Health Mart has grown into a chain of approximately 5,000 franchised locations. And, on average, one new Health Mart store opens every week. By acquiring Health Mart, McKesson accomplished __________.
forward integration in the supply chain
In 2017, Target made charitable contributions of $217,673,712 in cash and products. Much of the money was used to improve children's education and development through grants for field trips, youth soccer, and the arts. In addition to supporting K-12 education through its giving, the company also provides financial support to St. Jude's Children's Research Hospital, the American Red Cross, and the Salvation Army. Target employees also donate hundreds of thousands of hours to volunteer projects in their communities each year. Target's actions are an example of a retail corporation's commitment to __________.
fulfilling its corporate social responsibility
Jared Sherrod prefers Nike athletic shoes over any other brand. He does not, however, have a strong preference for any particular retailer, or even for any category of retailer. His next pair of Nikes may be purchased at Finish Line, Shoe Carnival, Foot Locker, JCPenney . . . one never knows. And, since Jared wears his Nikes as an all-around sneaker rather than for playing a particular sport, his next pair may be running shoes, basketball shoes, cross trainers - whatever happens to be convenient to purchase when it's time to buy. Jared's purchase behavior, when it comes to athletic shoes, most closely resembles __________.
habitual decision making
Tucker Rucker has little to no preference for a brand of tires. He says, "Goodyear, Bridgestone, Toyo, Michelin, Uniroyal, Dunlop, BF Goodrich, Cooper, Hankook, Yokohama, Mastercraft, Cooper, General - they're all about the same. Round, black, and made of rubber." Tucker will go only one place to buy tires for his Ford F-150 truck and for the family Taurus: Walmart Auto Care Center. If one of the vehicles needs tires, Tucker goes to Walmart. Once he's there, he'll try to keep the process short and simple by buying whatever the sales associate recommends, unless he considers the price to be outrageously out of line. Based on the authors' explanation of "types of buying decisions," Tucker's tire shopping behavior most closely resembles __________.
habitual decision making
When gasoline stations, convenience stores, and supermarkets all sell milk, bread, and motor oil, this is an example of which kind of competition?
intertype
One of the four criteria for deciding whether a retail segment is a viable target market is "reachability." A reachable segment:
is one to which the retailer can effectively target promotions and other elements of the retail mix.
__________ is described by the authors of your textbook as "the set of business activities that adds value to the products and services sold to consumers for their personal or family use."
retailing
Finley McKinley has little to no preference for a brand of tires. He says, "Goodyear, Hoosier, Firestone, Toyo, Michelin, Uniroyal, Dunlop, BF Goodrich, Cooper, Hankook, Yokohama, Mastercraft, Bridgestone, Nexxen, Cooper, General — they're all about the same. Round, black, and made of rubber." Finley will go only one place to buy tires for his Toyota Camry: NTB (National Tire and Battery) Auto Center. When the tires on the Camry are worn enough to need replacement, Finley goes to NTB. Once he's there, Finley will look at the displays and read the signs and brochures, as well as talking to the service representative (if necessary). Finley's strategy is to choose the tires that have the best warranty in his price range. Based on the authors' explanation of "types of buying decisions," Finley's tire shopping behavior most closely resembles __________.
limited problem solving
Tanner Danner believes that his choices about what food to eat matter a lot. He thinks that in addition to the impact of his food choices on his own physical well-being, they have profound environmental, political, and economic consequences as well. Tanner's favorite books are Coming Home to Eat (by Gary Paul Nabham), Food Rules: An Eater's Manual (by Michael Pollan), and The Complete Idiot's Guide to Urban Homesteading (by Sundari Elizabeth Kraft). After reading in HuffPost that Denver is the #1 city in the U.S. for local food, Tanner left his native Shelbyville, Kentucky and moved there. Tanner tries very diligently to eat only vegetables that were grown within a 100-mile radius of where he lives. Similarly, most of the beef, chicken, and pork that Tanner eats comes from animals that were raised and slaughtered in the surrounding region, and most of the dairy products that he consumes come from Colorado dairies. Tanner's favorite food shopping venue is the Metro Farmer's Market. For items that he can't buy at Metro Farmer's Market (which is located outdoors and closes during the winter), Tanner shops at Vitamin Cottage Natural Grocers, In Season Local Market, Foodcopia's Online Corner Store, and - if he absolutely must - Whole Foods Market. (Tanner has mixed feelings about Whole Foods because some of its products are shipped from faraway locations, which requires large amounts of fossil fuel to be burned.) Six months ago, Tanner gave up coffee and chocolate, since their base ingredients are not grown on the U.S. mainland. However, his latest hobby is growing bonsai coffee and hydroponic cacao trees in his living room, and he hopes that his harvest will enable him to begin consuming these items once more. The authors of your textbook would describe Tanner as a(n) __________.
locavore
Which of the following is not one of the overriding principles of conscious marketing?
maximizing sales revenue, profit and market share
A(n) __________ retailer uses more than one channel to sell and deliver merchandise and services to customers. A(n) __________ retailer coordinates multichannel retail activities in a way that provides seamless and synchronized customer experience.
multichannel; omnichannel
In the five-stage buying process, as it is presented by the authors of your textbook, a customer enters the __________ stage because of an unsatisfied need.
need recognition
According to the authors of your textbook, we can consider Burlington (formerly known as Burlington Coat Factory), Marshalls, and Big Lots to be __________.
off-price retailers
McLane Company is a Temple, Texas-based company that distributes grocery and nonfood products to convenience stores, discount retailers, wholesale clubs, drugstores, military bases, quick service restaurants, and fast casual restaurants throughout the United States. Retailers who buy from McLane's include Walmart, Sam's Club, Walgreens, Circle K, 7-Eleven, Target, Love's, Family Dollar, and Army and Air Force Exchange Service (AAFES). Restaurants that are supplied by McLane include Taco Bell, Pizza Hut, KFC, Sonic, Long John Silver's, Applebee's, and Sonic. McLane is a __________.
producer
The authors of your textbook state that retailers create value by enabling customers to choose from a wide selection of products, brands, sizes, and prices - all at one location. According to the authors, the technical name for providing value in this manner is __________.
providing assortments
In a typical supply chain for a low-cost, frequently-purchased consumer product (such as a magazine or package of candy), a wholesaler would primarily sell to and be concerned about the ___________, and a manufacturer would primarily sell to and be concerned about the ___________.
retailer; wholesaler
Hypermarkets originated in France in the mid-20th century, and are common in Europe and in some South American countries. Shoppers in the United States, on the other hand, have not responded well to the hypermarket concept. Therefore, true hypermarkets are rare in the U.S. American consumers seem be more comfortable with a retail format that is similar in some ways to, say a Carrefour hypermarket, but which offers more nonfood items. This American "equivalent" of a hypermarket is called a(n) __________, and __________ is an example of one. However, in comparison, a hypermarket would typically carry a larger proportion of __________.
supercenter; SuperTarget; packaged food items
A __________ is a set of firms that make and deliver goods and services to consumers.
supply chain
Compared to other retail channels, __________ enable(s) retailers the greatest ability to personalize merchandise offerings and information for each customer - and the ability to do so the most economically.
the internet
The authors of your text define conversion rate as
the total number of customers who leave the store (or exit a website) having made a purchase, divided by the total number of shoppers who enter the store (or access the website)
According to the authors of your textbook, people go shopping because of __________ needs.
utilitarian and hedonic